Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pangaea Logistics Solutions Ltd (NASDAQ:PANL) achieved TCE rates 33% above the prevailing market, showcasing the strength of their commercial strategy.

• The company successfully integrated the SSI Handy fleet, increasing shipping days by 41% year over year.

• Pangaea Logistics Solutions Ltd (NASDAQ:PANL) completed 160 days of planned off-hire for vessel dry dockings, optimizing fleet availability for stronger demand periods.

• The company announced a new share repurchase program of up to $15 million, indicating confidence in their undervalued shares.

• Expansion efforts at the Port of Tampa and new operations in Port Charles, Louisiana, and Port of Aransas in Texas are progressing on schedule, enhancing their logistics capabilities.

Negative Points

• Pangaea Logistics Solutions Ltd (NASDAQ:PANL) reported an adjusted net loss of approximately $2 million for the first quarter of 2025.

• Average market pricing declined 37% compared to the prior year period, impacting financial performance.

• Vessel operating expenses increased by approximately 75% year over year due to the acquisition of the SSI fleet.

• The dividend was reduced from $0.10 to $0.05 per quarter, reflecting a shift in capital return strategy.

• The company faces elevated levels of volatility and uncertainty in the dry bulk sector, impacting pricing and demand.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Signs with PANL.

Q: Mark, you modified your returning cash to shareholder strategy by adding a buyback. Your dividend now is $0.05 versus $0.10 a quarter. Do you plan on maintaining this dividend through the cycle, or will you consider a variable model? A: (CEO, Mark Filinowski) We haven't discussed a variable model yet. We've been considering different ways to return value to shareholders. My preference is to reinvest in the business, but with recent share price drops, we decided to try a buyback. We'll evaluate the dividend and buyback strategy quarterly.

Q: You mentioned an expense reduction program by the end of the year. Is that related to the integration savings with the SSI fleet, or is it an ongoing review of operations? A: (CEO, Mark Filinowski) It's a bit of both. We didn't enter the SSI transaction for cost savings, but having a larger fleet allows us to drive cost decreases, such as in insurance. We're learning from each other and finding ways to save money with a larger operation.

Q: Can you explain the rationale behind the dividend cut from $0.10 to $0.05 per quarter? A: (CEO, Mark Filinowski) The board has a different perspective on share buybacks. We aim to maintain a consistent dividend, not necessarily a consistent amount. Our operations generate cash flow for shareholder returns, and we're exploring prudent approaches to achieve this.